World economy to grow by just 2.4% in 2016 – UN

UNITED NATIONS—As world economic growth remains weak, world gross product will grow by just 2.4 percent in 2016, the same pace as in 2015, said a UN report here on Thursday.

This marked a downward revision of 0.5 percentage points from UN projections in December 2015.

The World Economic Situation and Prospects as of mid-2016 report, released by the UN Department of Economic and Social Affairs, pointed out that persistent weakness in aggregate demand in developed economies remains a drag on global growth.

Low commodity prices, mounting fiscal and current account imbalances as well as policy tightening have further dampened prospects for many commodity-exporting economies in Africa, Latin America and the Caribbean, it added.

“Economic activity in the world economy remains lackluster, with little prospect for a turnaround in 2016,” it noted.

In addition, China’s economy is projected to grow by 6.4 percent in 2016 and 6.5 percent in 2017, in line with the government target, said the report.

Lenni Montiel, assistant secretary-general for economic development, said a more balanced policy mix is needed to rejuvenate global growth and to create favorable conditions for the world’s sustainable development.